Home selling is viewed as an easy job. Just put up the listing, contact the buyer, and your job is done. But it's not as easy as it seems.
Home buying is one of the major decisions of an individual’s life. A buyer is more likely to have dwindling thoughts before deciding upon a property.
At times it happens that an interested buyer takes time before closing the deal or signing the contract. Sometimes they find a better home in the meantime and change their minds.
But what are the legal implications of this scenario and how the interests of sellers are protected in this indecisiveness. Hear from the real estate law experts at NDM Law, a reputed Ontario based law firm.
· In case a buyer backs out from the contract
If a buyer offers a seller a certain amount for the said property, there's a 24 hour period after signing the contract or agreement to pay the deposit. If the buyer backs out and refuses to pay the deposit, and the seller makes a deal somewhere else for less than what was offered by the first buyer, then the first buyer can be sued for the amount difference.
· The paid deposit
In case the buyer backs out after paying the deposit, the deposit will be held in trust by your brokerage till a mutual agreement is reached or till the order of court of law is issued to decide upon the deposit. In case of a deadlock, the brokerage may held your deposit in trust for years so that buyer cannot use it to make another deal.
· In what cases buyer can walk out without penalty?
In case the city can claim a right on seller's title to access 20% of the property and buyer is not informed about this in the beginning, then buyer has the right to walk out without penalty. However, title insurance can prevent this and can safeguard seller from this scenario.
There are many loopholes in buying and selling of real estate that many people are not aware of. It's advisable to hire real estate legal services by a reputed law firm such as NDM Law in Ontario to glitch proof your home buying or selling experience.